Strategy-Proof Estimators for Simple Regression
AbstractIn this paper we propose a whole class of estimators (“clockwise repeated median estimators” or CRM) for the simple regression model that are immune to manipulation by the agents generating the data. Although strategic considerations affecting the stability of the estimated parameters in regression models have already been studied (the Lucas critique), few efforts have been made to design estimators that are incentive compatible. We find that some well-known robust estimators proposed in the literature like the resistant line method are included in our family. Finally, we also undertake a Monte Carlo study to compare the distribution of some estimators that are robust to data manipulation with the OLS estimators under some specific data manipulation process.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2003/14.
Length: 42 pages
Date of creation: 2003
Date of revision:
strategy-proofness; single-peaked preferences; robust regression; data contamination.;
Other versions of this item:
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-27 (All new papers)
- NEP-CMP-2003-04-27 (Computational Economics)
- NEP-ECM-2003-05-12 (Econometrics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Salvador Barbera & Matthew Jackson, 1991. "A Characterization of Strategy-Proof Social Choice Functions for Economies with Pure Public Goods," Discussion Papers 964, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
- Javier Perote & Juan Perote-Peña & Marc Vorsatz, 2012. "Strategic behavior in regressions: an experimental," Working Papers 2012-07, FEDEA.
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